* Financing to pay the costs of engineering and construction will come from the proceeds of a Clean Water State Revolving Fund (CWSFR) 20-year low-interest loan. Initial repayment of the loan will begin no sooner than six months after completion of the projects, according to city documents.

Wastewater treatment facilities have been a key piece of infrastructure in attracting new companies like Clearwater Paper in recent years, Shelby city leaders say.

Now, the city plans to move forward with nearly $12 million in wastewater system improvements that will keep Shelby clean and help the city continue to compete for new and expanding industry.

City council approved plans this week to finance improvements to the First Broad River Wastewater Treatment Plant and sewer lines from the First Broad River and Hickory Creek. It also approved City Manager Rick Howell to negotiate contracts with engineering firms to work on the projects.

The wastewater plant is 50 years old and helps treat wastewater off the First Broad River and Hickory Creek, according to city information.

“Those are the two major drainage collection waterways for the city. The (equipment) has been on the ground a long time and needs work,” Howell said, adding the wastewater project is one of the key city capital projects in the past decade. “The action taken (by council) is significant in the future economic viability in the city. Your wastewater treatment plant is a lifeblood of the city. It’s an economic development issue and an environmental issue.”

The city will also face more stringent wastewater treatment limits from the state Aug. 1, 2016, according to city documents, and the improvements will help meet those requirements. Howell did not return a call from The Star, seeking more details about those limits, in time for this story.

“Sewer is one of those things you take for granted,” said Mayor Stan Anthony. “You think if you have water, you have sewer. This (improvement) will be excellent for economic development.”

Reach Matthew Tessnear at 704-669-3331, at mtessnear@shelbystar.com or on Twitter @MatthewTessnear.

* Financing to pay the costs of engineering and construction will come from the proceeds of a Clean Water State Revolving Fund (CWSFR) 20-year low-interest loan. Initial repayment of the loan will begin no sooner than six months after completion of the projects, according to city documents.

* Shelby leaders appropriated about $233,000 from the city’s Sewer Fund reserves to pay the closing costs associated with the two projects.

* “It is anticipated that any effects on future sewer rates can be mitigated significantly because of the payoff of existing sewer debt in the spring of 2016,” a memo from City Manager Rick Howell to Mayor Stan Anthony and city council states.

Other business at Monday night’s city council meeting

* Mayor Stan Anthony presented a key to the city and resolution recognizing 25 years of service and retirement to Rhonda Lingerfelt, who most recently served as customer service manager.

* Representatives from Martin Starnes & Associates presented the findings of a 2011-12 fiscal year city of Shelby financial audit. The city received an “unqualified opinion,” the highest financial audit rating possible. Auditors reported finding “no questioned costs” in the city’s finances.

* A McGowan Road resident presented concerns about speeding in the Kenwood Heights neighborhood to council and requested city leaders study the suggested issue. Councilman David White said speeding and traffic are a problem in the area, and Anthony said city staff will study the issue.